April 25, 2005

SU-RAJ Diamonds & Jewellery Ltd. plans to continue with its focus on B2B (business-to-business) marketing of gold jewellery, in an effort to tap rapidly-growing domestic and overseas markets.

The company has identified the potential of B2B marketing in the domestic market, as over 28 local brands, including Sveni, Gili, Ishi and Tanishq, have been launched in the last two years.

"Su-Raj Diamonds will continue to cater to its international B2B clients, while its group company, Forever Precious Jewellery & Diamonds Ltd, will tap the domestic B2B market," Mr Jatin Mehta, Chairman, SDJL, told Business Line.

The company recently picked up a 49 per cent stake in Forever Diamonds, which is a supplier to leading jewellers across the country.

Su-Raj is now selling its products through a large network of retailers such as Tanishq, TBZ, Alukkas, Vummidiars and Chintamani. It plans to retain its focus on the domestic B2B segment and is increasing its manufacturing capacities at Bangalore, Goa and Manikanchan.

"India's jewellery market will continue to grow at 40 per cent per annum in the next few years on continued growing demand," Mr Mehta said.

The company has a marketing network spanning New York, Antwerp, Bangkok, Hong Kong and Los Angeles.

SDJL is also focusing more on export markets such as West Asia and the US since both are strategically located.

"India has the cost advantage apart from skilled and cheaper labour force, which makes it an attractive outsourcing option for global players. India can even do better. I believe we should change our labour laws, as we are competing with China and Thailand. China has no labour law," Mr Mehta said.

For the nine months ended December 31, the company's net income from operations rose 45 per cent to Rs 761.24 crore. Net profit increased by 31.20 per cent to Rs 22.46 crore.

Source: The Hindu Business Line